Limited deliveries, high deficits and increased interest from speculative investors led to a 40% increase in palladium prices over the past three months, reports Reuters.
The price of this metal, mainly used in the production of vehicle catalysts, reached a record high of $ 1,185.40 per ounce on Friday, with only $ 35 under $ 1,220 for an ounce of gold.
"What we see is the culmination of several years of continued deficit. $ 1200 is the next psychological threshold," says Jonathan Butler, analyst at Mitsubishi, who expects us to go to $ 1,300.
In turn, Citibank analysts are of the opinion The situation in the physical market for palladium is one of the hardest in the past two decades.
Car maker Johnson Matthey expects a deficit of 239,000 ounces this year, while GFMS analysts forecast a deficit of over a million ounces in each of the next three years on a palladium market estimated at 10 million ounces per year.
Palladium prices rose this year despite the fact that car sales in China, the world's largest car market and stagnation in US sales, the world's second largest market.
The automotive industry is responsible for 80% of palladium demand
However, the arguments for a growing palladium market are supported by the transition of European automakers to gasoline-based cars after the Dieselgate scandal, which may require large amounts of palladium for the construction of catalysts.
Additionally, it is added that palladium stocks are down. Stocks monitored by Nymex are 46,965 ounces, the lowest level since 2003. Factors for ETF-funded palladium fell below 800,000 ounces from 2.6 million ounces by 2015.
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